City
Council Memorandum
T
O: HONORABLE MAYO R AND CITY COUNCIL DATE: APRIL 25, 2023 FROM: COMMUNITY & ECONOM IC DEVELOPMENT WARD: 1
DEPARTMENT AND OFFICE OF SUST AINABILITY
SUBJECT: LEASE/LEASE-BA CK AGREEMENT WITH NORTHSIDE SOLAR FARM, LLC
FOR SOLAR FACILI TIES AT THE NORTHSIDE AG RICULTURE INNOVATION CENTER
ISSUE:
Receiv
e an update on the Northside Agricultur e Innovation Center and approve a Lease/Lease- Back Agreement with Northside Solar Farm, LLC to construct and maintain solar greenhouses and structures, agri-photovoltaic panels, and related solar facilities generating approximately 750 kilowatts of solar energy at the Northside Agri culture Innovation Center located at 895 and 900 Clark Street, Riverside, CA.
RECOMMENDATIONS:
That the City Council:
1. Receive and file an update on the Nort hside Agriculture Innovation Center;
2. Approve a Lease/Lease-Back Ag reement with Northside Solar Farm, LLC for a two (2) year option period for a sum of five hundred dollars ($500), and a primary lease term of twenty years with an annual rent of one hundred dollars ($100) for a total lease agreement payments from Northside Solar Farm, LLC of $2,500 and a payment of $1 annually for 20 years from the City of Riversi de for the leaseback portion of th e agreement for a total of $20;
3. Authorize the City Manager, or his designee, to execute the Lease/Lease-Back Agreement with Northside Solar Farm, LLC, including making minor and non-substantive changes; and
4. Direct staff to draft a Prof essional Services Agreement with Northside Solar Farm, LLC to complete the Northside Agriculture Innovation C enter’s master site designs and return to City Council for its review and approval.
ECONOMIC DEVELOPMENT, PLACEMAKING, AND BRANDIN G/MARKETING COMMITTEE RECOMMENDATIONS:
The Economic Development, Placemaking, and Branding/Marketing Committee met on October 20, 2022, with Chair Fierro, Vice Chair Edwards, and Member Hemenway present, to consider a
REVISED
Date: 4-25-23
Item No. 8
Lease/Lease-Back Agreement with Northside Solar Farm, LLC ● Page 2 Lease/Lease-Back Agreement with Lamplighter Energy, Inc. to develop and construct solar facilities at the Northside Agriculture In novation Center. After discussion the Committee unanimously voted to direct st aff to finalize the Lease/Lease-Ba ck Agreement with Lamplighter Energy to develop and construct solar facilities at the Northside Agriculture Innovation Center and recommend the City Council approve the agreement.
BACKGROUND:
Since its inception in 2014, the City of Riverside’s GrowRIVERSIDE Initiative (growriv.com) has led the Inland Southern California region in building a more resilient food ecosystem by galvanizing economic development and activities to build greater community well-being to ensure the long-term viability of the local food system. T he multitude of challenges facing agriculture – which include climate change impacts, permanent land use changes with the conversion of prime agricultural land to non-agriculture uses, state and national initiatives accelerating adoption of renewable energy, and an aging agricultural workfo rce – provide opportunities to innovate and transition to climate-smart and high-tech agriculture. As Riverside and the Inland region are projected to continue grow in population over the next two dec ades, balancing water, food, and energy needs form a nexus for sustainable development.
The GrowRIVERSIDE Initiative has identified innovative approaches to integrate sustainable management of water, food and energy to balance the needs of the community, nature and the economy. In 2018 the City, in pa rtnership with the Riverside Food Systems Alliance (RFSA), conceptualized the Northside Heritage Meadows Project (Northside Project) for submission to the 2018 Urban Greening Grant program to fund an urban greening infrastr ucture project to reduce greenhouse gas (GHG) emissions and provide mult iple benefits. The City Council authorized Resolution No. 23360 for the City’s application and project proposal, and in November 2018 the City was notified that it had been selected for a $3,000,000 Urban Greening Grant award. In April 2019, the City Manager’s Office executed a grant agreement with gr ant administrator California Natural Resources Agency.
Funding from the Urban Greening Grant is intended to provide multiple benefits by way of integrating multiple project elements at the Nort hside Project, recently renamed from Northside Heritage Meadows to Northside Agriculture Innovation Center (NAIC) to better reflect the myriad site elements and programs. Grant funds are to facilitate acquisition of 7.58 acres of vacant land on two parcels located at 850 and 900 Clar k Street (APNs 246- 230-020 and 246-242-011, respectively) for the establishment of an ur ban agriculture center to provide economic development and educational oppor tunities related to natural and working (agricultural) landscapes. Per the Urban Greening Grant project proposal, multiple project elements include trails, green infrastructure, a community gar den, and open-space management. Additionally, statutory priorities by way of Senate Bill 859 encourages Urban Greening Grant recipients to facilitate interagency cooperation and the integration of project elements to provide access to quality jobs and workforce education and training for residents of disadvantaged communities.
A myriad of activities for the Northside Pr oject have been completed and/or are currently underway to accomplish the Project’s multiple objectives and to be delivered at the project site, including:
1. Completion of site acquisition on April 22, 2021 for 895 and 900 Clark Street for a total purchase price of $1,900,000 with Urban Greening Grant funds;
2. Demolition of an existing structure on 900 Cla rk Street in February 2022 in preparation for site development;
Lease/Lease-Back Agreement with Northside Solar Farm, LLC ● Page 3
3. Formation of a community garden plann ing committee, which meets monthly;
4. Securing $32,000 from Love Tito’s Foundation to build out the community garden;
5. Partnership with Riverside- Corona Resource Conservati on District to develop and manufacture interpretive signs for future installation at the project site;
6. Development of a Covenant and Agreement and Declaration of Restrictions with the California Natural Resources Agency to ensur e the site elements reflect Urban Greening Grant priorities and site uses are preserv ed and protected for the next two decades per grant terms;
7. An update to the Project’s conceptual site plan elaborating community engagement venues and agriculture workforce development elements, and the subsequent update to the project name to Northside Agriculture In novation Center to more accura tely reflect activities and programs to take place at the site. See Atta chment 2: Northside Ag riculture Innovation Center Site Plan and Project Elements for details;
8. Collaboration with University of California, Riverside ( UCR) Office of Technology Partnership and collaboration with UCR’s OASIS (Opportunities to Advance Sustainability, Innovation, and Social Inclusion) Initiative to deliver workforce development and startup programs in sustainable, controlled environment, and high-tech agriculture;
9. Collaboration with U CR University Extension and Rivers ide Food Systems Alliance to develop a 10-month Farmer Training Program;
10. Receipt of an unsolicited land lease and lease back offer from Lamplighter Energy, Inc. to construct solar greenhouses, agrivoltaic panel s and solar facilities to support multiple climate-smart controlled environ ment and high-tech agricultur e training programs at the Northside Project;
11. At the invitation of the California State Labor & Workforc e Development Agency, the City led a joint application with Riverside County Wo rkforce Development Board (lead fiscal agency), UCR, Growing Hope Project, Lamplighter Energy, Inc., Riverside Food Systems Alliance, UC Cooperative Extension, and industry partners to submit a $4 million proposal at the end of January 2023 to es tablish a High Road Traini ng Partnership Program for climate-smart agriculture workforce training programs; and
12. A joint effort with UCR in securing a federal earmark in the amount of $1 million under the Community Projects Funds via Congressman Mark Takano’s Office for agricultural education and workforce training resources to outfit solar greenhouses.
City staff has worked with stakeholders to update the conceptual site plan to provide further details on the Project’s public engagement and workforce dev elopment elements, the details of which are provided in Attachment 2, Northside Agricu lture Innovation Center Site Plan and Project Elements.
DISCUSSION:
In 2021, representatives from the University of California Riverside’s Office of Technology Partnerships (UCR OTP) and Lamplighter Energy, Inc. (Lamplighter) jointly approached the City to explore efforts to deploy solar greenhouses for research, climate-resilient agriculture workforce development, and incubation of ag-tech startups. UCR OTP encompasses Technology Commercialization, Corporate & Strategic Partnerships, and I nnovation & Entrepreneurship to facilitate the development and commercializat ion of ideas emanating from UCR and the community for the benefit of society; the mission of OTP is to catalyze translation of University research and discoveries to the pr ivate sector and to pr ovide opportunities for faculty, students, Lease/Lease-Back Agreement with Northside Solar Farm, LLC ● Page 4 and the community at large to explore entrepreneurial endeavors through collaborations with the private sector. Lamplighter is a developer and operator of projects leading to the distribution of renewable energy, clean water and zero carbon fuels. For over a decade, Lamplighter has been developing innovative farming methods and combining them with renewable energy facilities and artificial intelligence to move farming operations from outdoors to indoor environments to improve operational efficiencies, increase yields, reduce inputs (e.g. water and fertilizer use), and increase returns for farmers.
To facilitate economic development in the climate-smart agriculture space, Lamplighter presented an unsolicited land lease/lease ba ck proposal to build at leas t 45,000 square feet of solar greenhouses, solar photovoltaic (PV) panels for agrivoltaic (defined as dual use integrating agriculture and solar PV panels), and supportive solar infrastructure (collectively referred to as solar facilities) at the Northside Agriculture Innovation Center to support research, demonstration, and training programs. Under this proposal, Lamplighter will:
1. Finance the development and construction of the solar facilities at no cost to the City nor project partners; and
2. Lease back spaces within the solar greenhous es and structures for an annual cost of $1 (one dollar) to the City for programming to be de livered by project partners, including UC Riverside.
The solar facilities will provi de state-of-the-art greenhouses to facilitate multiple workforce development programs in a controlled environmen t, sustainable, and climat e-smart agriculture, thereby meeting Urban Greening Grant priorities for the Northside Project. Solar greenhouses will house a future co-work learning center to support land-based agriculture-themed education as well as host public engagement activities su ch as school tours, workshops, and community events. The programs antic ipated to be delivered at the Norths ide Project will be carried out by education and non-profit partners.
The market value of the proposed solar facilities investment by Lamplight er is valued at $4.2 million. Lamplighter Energy proposes a twenty-year lease term for an annual rate of one hundred dollars ($100), with an initial five hundred dollars ($500) to secure the lease option over a two- year entitlement period.
The inclusion of the solar fac ilities at the Northside Project as proposed by Lamplighter is projected to have a triple-bottom line impact, in cluding training at least 135 individuals annually via several workforce development programs planned, and the incubation of 6-10 farmers and ag tech startups annually with projecti ons of twenty-five companies to be launched over ten years.
Scaled renderings of the solar facilities are provided in Attached 3, Northside Agriculture Innovation Center Renderings.
A lease/lease back agreement for the solar fac ilities and a concurrent Feed-In-Tariff Power Purchase Agreement with th e Public Utility are required to realize these opportunities. Upon approval by the City Council, the lease/lease back agreement and agreemen ts with the Public Utility will be with Northside Solar Farm, LLC, an entity established by Lamplighter Energy specifically for the Northside Project.
Due to their expertise in agricultural site de velopment, City staff is also recommending hiring Lamplighter to serve as the Master Site Designer to produce bid-ready construction plans for the Northside Agriculture Innovatio n Center’s landscape (greening infrastructure, hardscape, irrigation, etc.) and infrastructure (water, utilities, septic, etc.) elements that are complimentary to Lease/Lease-Back Agreement with Northside Solar Farm, LLC ● Page 5 the solar facilities. A Professional Services Agreement will need to be developed between the City and Northside Solar Farm, LLC, and be brought back to City Council for review and approval.
City staff have conferred with the Purchasin g Manager who has determined and approved the use of Purchasing Reso lution No. 23812 Section 702 (c) & (n) which states that , “Competitive Procurement through the Informal Procurement and Formal Procur ement process shall not be required, in any of the following circumstances: …(c) When the Pr ocurement can only be obtained timely from a single source and the Manager is satisfied that the best price, terms and conditions for the Procurement thereof hav e been negotiated; …(n) When t he Awarding Entity waives bidding requirements under and accord ing to the circumstances set forth in Section 1109 of the City Charter, or when it is determined by the Manager to be in the best interest of the City to do so.;” thus allowing the Cit y to single source the agreement di rectly with Northside Solar Farm, LLC upon approval by City Council with five affirmative votes.
The Purchasing Manager concurs that the recommendation is in accordance with Purchasing Resolution 23812.
STRATEGIC PLAN ALIGNMENT:
The inclusion of solar facilities as proposed by Northside Solar Farm, LLC at the Northside Agriculture Innovation Center contributes to the following Strategic Priorities and Goals:
Arts, Culture and Recreation: Provide diverse community experiences and personal enrichment opportunities for people of all ages.
Goal 1.5: Support programs and amenities to further develop literacy, health, and education of children, youth, and seniors throughout the community.
Community Well-Being: Ensure safe and inclusive neighborhoods where everyone can thrive. Goal 2.6: Strengthen comm unity preparedness for emergencies to ensure effective response and recovery.
Economic Opportunity: Champion a thriving, enduring economy that provides opportunity for all. Goal 3.1: Facilitate partnerships and program s to develop, attract and retain innovative business sectors.
Goal 3.2: Work with key par tners in implementing workfo rce development programs and initiatives that connect local workers wit h high quality employment opportunities and provide access to education and training in Riverside.
Goal 3.3: Cultivate a busi ness climate that welcomes i nnovation, entrepreneurship and investment.
Goal 3.4: Collaborate with ke y partners to implement policies and programs that promote local business growth and ensure equitable opportunities for all. Goal 3.5: Lead public-private partnerships to build resources and grow the capacity of the local food system.
Environmental Stewardship: Champion proactive and equitable climate solutions based in science to ensure clean air, safe water, a vibrant natural world, and a resilient green new economy for current and future generations.
Goal 4.5: Maintain and cons erve 30% of Riverside’s natural lands in green space including, but not limited to, agricultural lands and urban forests in order to protect and restore Riverside’s rich biodiversity and accelerate the natural removal of carbon, furthering our community’s climate resilience.
Lease/Lease-Back Agreement with Northside Solar Farm, LLC ● Page 6
Infrastructure, Mobility & Connectivity : Ensure safe, reliable infr astructure that benefits the community and facilitates connection between people, place and information. Goal 6.2: Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, re siliency, sustainability, and facilitate connectivity.
Collaboration with Lamplighter Energy, Inc. at the Northside Agriculture Innovation Center aligns with each of the five Cross-Cutting Threads as follows:
1. Community Trust – The concept of the Northside Agriculture Innovation Center has been developed in collaboration wit h and is driven by communi ty members and food systems stakeholders. As a community-based project, t he solar facilities at the Northside Project reflects a sustainable approach to achievin g food systems priorities through education, employment and training, environmental stewardship, and increasing food resiliency.
2. Equity – The Northside Project outcomes benefit the entire community as a community- based project. The project’s built environment as provided by the solar facilities enhances placed-based programs for underrepresented individuals and the project itself is located in an underserved community.
3. Fiscal Responsibility – The Northside Project has wholly been funded by grant funds and private investments, thereby leveraging resources brought to the table by multiple project partners, and further enhanced with private investment from the solar facilities. Multiple elements at the project ar e expected to generate revenues to help support programming and third-party site management to ensure long term sustainability.
4. Innovation – The Northside Project will be a regional flagship urban center demonstrating climate-smart technologies in agriculture. This project dem onstrates how private, public, and non-profit collaboration br ings about innovation with outside-the-box approaches to address a multitude of concurr ent challenges and opportunities in the region’s food ecosystem resiliency.
5. Sustainability & Resiliency – The project transforms over eight acres of open space into an urban greening project with mult iple benefits to achieve a triple bottom line: spurring economic opportunities by providing work force training and new farmer and ag tech incubation; increasing food access and co mmunity resources in an underserved community; and the responsible stewardship of natural resources dem onstrating multiple benefits.
FISCAL IMPACT:
The total fiscal impact of the action is $1 per year for a twenty-year lease back term, or a total of $20 and potential revenue of $2,500 . The funds are available in the General Fund, Community Development-Admin, Grow Riverside Professional Servic es account 9878200- 421000. Any revenue received from the two-year option and potential 20-year lease will be recorded as received to the appropriate account as determined by the Finance Department. Appropriations for future fiscal years will be included in the Department’s Budget submissions for those fiscal years to be presented to the City Council for approval.
Prepared by: Jennifer A. Lilley, Community & Economic Development Director Certified as to
Lease/Lease-Back Agreement with Northside Solar Farm, LLC ● Page 7 availability of funds: Edward Enriquez, Inte rim Assistant City Manager/Chief Financial Officer/Treasurer
Approved by: Mike Futrell, FAICP, City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Concurs with;
___________________________
Ronaldo Fierro, Chair
Economic Development, Placemaking, and Branding/Marketing Committee
Attachments:
1. Presentation
2. Northside Agriculture Innovation C enter Site Plan and Project Elements
3. Northside Agriculture I nnovation Center Renderings
4. Lease/Lease-Back Agreement wit h Northside Solar Farm, LLC
5. Economic Development, Placemaking, Br anding/Marketing October 20, 2022 Minutes